<div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Over 1000 staff at Australia's biggest </span><a href="https://www.9news.com.au/world/steel-aluminium-us-tariffs-on-australia-penny-wong-peter-dutton-trade-blows/4115539d-b985-4e45-ac22-98995e6603c4" rel="" target="_blank" title="aluminum"><span>aluminum</span></a><span> smelter have been warned that the plant's future is in doubt as government negotiations over untenable energy costs stall.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Rio Tinto-owned Tomago Aluminium said it has reached a "difficult point" and has started a consultation process with employees for when its electricity contract with AGL expires in 2028.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The miner said it has been undertaking a "comprehensive market-sounding process" to reach a solution for its NSW smelter since 2022, but is yet to identify a commercially-viable path forward.</span></div></div><div><div id="adspot-mobile-medium"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/national/two-dead-underground-mine-explosion-far-west-nsw/4e39a4bc-ee81-481e-b5d1-0f9a1ec2abf6" target="_blank"><strong><span>Two dead after mine explosion near regional town</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Tomago has been in years-long talks with state and federal ministers for ways to bring down its soaring energy prices and keep the smelter open.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Tomago chief executive Jérôme Dozol described the projected energy costs as "not commercially viable".</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"We continue to engage with stakeholders on a viable pathway for Tomago," Dozol said.</span></div></div><div><div class="OUTBRAIN" data-reactroot="" data-src="//www.9news.com.au/national/tomago-aluminium-staff-warned-over-future-of-aluminium-smelter/3aaefcae-c23d-4459-9ce8-908de7eabbf2" data-widget-id="AR_5"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Unfortunately, all market proposals received so far show future energy prices are not commercially viable, and there is significant uncertainty about when renewable projects will be available at the scale we need.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"While no decision has been made, this is a difficult point to reach. Our focus remains on operating safely and giving our people certainty as soon as possible."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Electricity accounts for more than 40 per cent of Tomago Aluminium's operating costs, Tomago said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Based on market proposals received to date, the cost of both coal-fired and renewable energy options from January 2029 would increase significantly, fundamentally changing operating economics and leaving the smelter unviable," the smelter said in a statement.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>It has reached a point where the smelter may consider ceasing operations by the end of 2028.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/national/pauline-hansons-one-nation-to-change-name-to-one-nation/0e4a0580-8268-43d9-9c29-ba68efd50d71" target="_blank"><strong><span>Pauline Hanson changes party name as polling support surges</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>An official decision has not yet been made.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The consultation process with staff will run until November 2021.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Tomago Aluminium was founded in 1983 and produces up to 590,000 tonnes of aluminium per year, making it the country's largest smelter.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span></span></strong><a href="https://www.9news.com.au/national/how-to-follow-9news-digital/29855bb1-ad3d-4c38-bc25-3cb52af1216f" target="_blank"><strong><em><span>DOWNLOAD THE 9NEWS APP</span></em></strong></a><strong><em><span>: Stay across all the latest in breaking news, sport, politics and the weather via our news app and get notifications sent straight to your smartphone. 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